ESG litigation risk is on the rise for corporates. They are facing the prospect of real monetary liability and challenges to their business models and corporate governance, whether as a result of shareholder activism, or claims by individuals, groups or communities impacted by the company’s activities or those of its subsidiaries or supply chain partners. And directors of those companies find themselves particularly under the spotlight, with claims being crafted in some cases around breach of director duties. In this latest instalment of our Demystifying ESG series, we will be delving into what this evolving liability landscape means for companies, their directors and those advising boards, with perspectives from the US, the U.K. and Europe.
On 10 May 2023 the Council of the European Union and European Parliament signed the regulation implementing the EU Carbon Border Adjustment Mechanism (CBAM). CBAM will enter into force twenty days after it is published in the Official Journal of the European Union.
In a recent Baker McKenzie global survey, 87% of senior lawyers expressed concern about facing an internal investigation in 2023 – a 22% increase from last year. At the same time, data privacy concerns, new regulations – including the EU Whistleblowing Directive – and a rising focus on ESG considerations are further compounding the challenges for organizations in this space. Explore the drivers for whistleblowing and investigations activity, key regional trends and steps to overcome common compliance pitfalls.
In this fifth and final installment of ID&E IMPACT, our Labor and Employment team in the US and UK chat about what’s fueling the trending surge in pay equity audits, the risks and rewards, what organizations should keep top of mind in the pay equity review process, and what employers can expect as a result of the EU Pay Transparency Directive reporting requirement.
Most major companies have implemented a compliance program but often struggle with two issues: ensuring the compliance program remains effective in light of their existing and changing landscape and making it more efficient by leveraging technology. The Compliance Cockpit specifically addresses both issues.
This bulletin covers the period of October 2022 to March 2023 and includes a decision of the Central Arbitration Committee (CAC) on the limitation period for bringing a Regulation 20 claim under the Transnational Information and Consultation of Employees Regulations 1999 and two interesting Employment Appeal Tribunal decisions considering: (i) whether the CAC has jurisdiction to hear complaints post Brexit where central management is situated in the UK, and (ii) whether the duty to inform and consult arises where collective redundancies are happening in multiple European Economic Area states but there is no common rationale for the redundancies.
South Africa’s newly enacted Employment Equity Amendment Act (EEA Act) includes changes to the legislation governing workplace transformation, as well stricter compliance measures for designated employers. Once in force, the EEA Act will oblige designated employers to prepare employment equity plans. It will be essential for such employers to align their plans to achieve the targets for the employment of black people under the broad-based black economic empowerment codes of good practice with their employment equity plans.
On 3 May 2023, Canada announced further amendments to the Special Economic Measures (Iran) Regulations in response to Iran’s “gross and systematic human rights violations in Iran and abroad.” These amendments list an additional nine individuals and one entity under Schedule 1 of the Regulations and entered into force on 28 April 2023.
This article provides an overview of the global rise in human and labor rights legislation linked to trade measures. In particular, it examines: Canada’s efforts to enforce the existing import prohibitions on goods mined or manufactured with forced labor under the Customs Tariff; compliance under the recently passed Bill S-211, Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff which comes into force on 1 January 2024; and the need for Canadian businesses to develop compliance measures on the import prohibition under the Customs Tariff, the new reporting requirements under Bill S-211, and the importance of continuing enterprise and supply chain scrutiny.
Restructuring is commonly used by employers to weather the economic storm. For a dismissal to be fair, it needs to be for a fair reason (which includes redundancy) and follow a fair process. However, there are additional considerations that an employer should take into account where disabled employees are affected, which, if breached, could result in financial and reputational high value claims against the employer.